Using the lease value rule, what is the valuation of Brent's company car benefit?

Q: Which of the following does not affect the computation of the rental income/expense under an…

A: Security deposits does not affect the computation of the rental income/expense under an operating…

Q: Explain the ways in which property owners can structure leases in order to recover operating…

A: Leasing refers to acquiring an asset from a lessor in lieu of rental payments.

Q: Describe how a "bargain buy option" affects the lessee's accounting for a finance lease deal.

A: HERE IS THE ANSWER:

Q: Why we will have a residual value in an operating lease?

A: Residual value is an estimated value of the asset at the end of lease term. In operating lease, we…

Q: For a(n) ________ lease, a lessor recognizes revenue on the sale and records the asset, ________…

A: The question is asking to identify the type of lease where a lessor recognizes revenue on the sale,…

Q: leasing

A: Introduction: Leasing is defined as an agreement between two parties known as lessor & lessee…

Q: Explain when and how a lessee accounts for a lease by the short-cut method.

A: The shortcut method is when the lessee and the lessor don't account for the lease at its…

Q: many

A: A lease is a contractual agreement between two parties wherein the lessor (owner) provides the right…

Q: We use dual model for lease accounting due to the accounting concept of: A) Conservatism. B)…

A: Dual model for lease accounting due to following accounting concept.

Q: Question - Building on these definitions, if I ask you in terms of an investment vs. a long term…

A: The investment In this case, the investor shall prefer compound interest because if the investor…

Q: Explain Lease-versus-Own Analysis?

A: Owning is the right of an entitlement to an asset by purchasing it while leasing is the contract by…

Q: Explain and evaluate the eff ects on financial statements and ratios of leasing assets insteadof…

A: Leasing can be defined as the contract between the lessor(owner) and the lessee(user of asset)…

Q: What is the difference between an “operating” and a “capital” lease? In easy terms please!

A: The criteria for defining the lease as a capital lease or operating lease   As per the notes issued…

Q: Why is it appropriate to compare the cost of lease financing with that of debtfinancing?

A: Cost of lease financing is the cost that is bear by the lessee who have owned the right from the…

Q: Explain Lease Renewal Options and REIT Rent Growth?

A: Answer: Lease renewal option: A renewal option allows a lease to apply for a definite time period,…

Q: What do we mean by overage in a retail lease agreement? How might it be calculated?

A: Overage on retail lease contract and its computation as follows: Retail lease contracts show a least…

Q: When are initial direct costs recognized in an operating lease? In a sales-type lease with selling…

A: Initial direct cost paid by the lessee is added to the right-of-use asset. If incurred by the…

Q: What do you think is the main difference of accounting for lease on the part of the lessee and…

A: Lease is regarded as the contract between two parties those to use the asset of the owner by another…

Q: A lease is a financing instrument used by an entrepreneur to acquire assets for the…

A: Leases – It is defined as a contract that conveys the right to control the use of an identified…

Q: how can a lease fee estate have a value that can be transferred to another party?

A: Lease fee Estate: Properties held by a single individual and rented out for a specific amount of…

Q: What is the difference between a tax-oriented lease and a nontax-oriented lease?

A: A tax-oriented lease: A tax-oriented lease, occasionally named a true lease, which offer the lessor…

Q: Is leasing good for individuals? Why or Why not?

A: The answer for the theory question on leasing is discussed hereunder : A lease is a contractual…

Q: Which one of the following accurately describes an aspect /aspects of a leveraged lease? I. The…

A: The question is related to the Leveraged Lease. In a leveraged lease, the lessor invests some money…

Q: Explain the difference in lessor income statement presentation for a sales-type versus operating…

A: Lease: Lease is a contractual agreement whereby the right to use an asset for a particular period of…

Q: How does the Leasing reduce the upfront cash needed to use an asset?

A:

Q: ect the le

A: Introduction : In simple words, leasing refers to the phenomenon under which an one entity use the…

Q: What are the pre-requisites of having a successful finance leasing?

A: Finance  leasing is the process wherein the finance company owns the asset legally throughout the…

Q: Would using a higher discount rate increase or decrease the amount of lease liability recorded?

A: Lease: A contractual agreement for an asset between two parties. The parties involved are lessee and…

Q: All of the following typically would be considered when estimated sellers cost except ------…

A: all of the above will be considered as estimated seller cost except " Pre payment Penalty"

Q: Why might refinancing be considered an alternative to a sale-leaseback?

A: Introduction: The given question is related to the concept of real estate finance and investments.…

Q: What is difference between lease method and installment method?

A: Lease:   It is an agreement between an owner of an asset (Lessor) and a tenant (lessee) where the…

Q: What is the reason for excluding variable lease payments from the measurement of the lessee’s lease…

A: Under IFRS 16, In lease payments there are two types of payments. One is fixed and other is variable…

Q: How do tax laws affect leasing?

A: Lease:   It is an agreement between two parties where the one party agrees to rent an asset owned by…

Q: or b

A: Make-or-Buy Decision Process The main output of planning procurements is the make-or-buy decision…

Q: Why do we need to differentiate lessor accounting for direct financing lease and sales-type lease?

A: Lease contract: Lease contract is an arrangement occurs between two individuals or entities through…

Q: What is meant by the term “off-balance sheet financing”? When do leases provide such financing and…

A: Financing in the normal course means the company has taken a loan from the investor when there is a…

Q: What is selling profit on a sales-type lease? How do we account for a sales-type lease with a…

A: Sales-type lease: Sales type lease in equivalent type of direct financing whereby the owner (lessor)…

Q: How do you think expense stops and CPI adjustments in leases affect the riskiness of the lease from…

A: INTRODUCTIONLease is a contract in which the right to use the asset is given by the lessor to the…

Q: Define sale-and-leaseback

A: sale-and-leaseback

Q: Explain the recognition of profit on a finance lease transaction for lessorswho are manufacturers or…

A: A lease can be defined as a contract or agreement that allows the lessee to pay a certain amount of…

Q: Compare the way a bargain purchase option and a residual value are treated by the lessee when…

A: